Britain Is Now The Only Major Economy Where Inflation Is Still Rising

• The U.K. is the only country among the Group of Seven wealthy nations where inflation is still rising, according to data from the Organization for Economic Cooperation and Development. The Paris-based organization said Tuesday that year-on-year inflation in the G7 fell to 4.6% in May, down from 5.4% in April, reaching its lowest level since Sept. 2021.
• The downward trend was observed across most advanced economies in May, with annualized inflation trending lower in the U.S. Canada, France, Germany, Italy and Japan. Britain, however, was found to be an outlier.
• U.K. consumer prices across all items rose to 7.9% in May when compared to the previous year, the OECD said, up slightly from 7.8% in April.
• Last month, the Bank of England hiked interest rates by 50 basis points to 5%, a larger increase than many expected. The BOE’s 13th consecutive rate rise takes the base rate to the highest level since 2008.
• The move, which exacerbated fears of a mortgage catastrophe, marked a divergence from other major central banks that have been able to either slow or pause interest rate hikes. The OECD in early June forecasted that the U.K. will post annual headline inflation of 6.9% this year, the highest level among all advanced economies.

(Source: CNBC)